Then they should patch the system to recognize when the player should be able to loot without losing karma, because its rather ridiculous and the sense of immersion breaks.
The thought I had about that is......
ok, that works if you're playing Good - You're killing evil people, and no one cares that you're taking their stuff. (Well, they do, but they're evil)
But what about when you play an Evil character, who's allied to the Powder Gang and the Legion? You're killing good guys, and..... hold on, the "authorities" (and whatever force it is that keeps track of Karma) probably still care that they're taking their stuff. Especially since, hey - you're
evil. Shouldn't stealing still be an "evil" act?
But then it's not an even system - "good" characters have no Karma effect for stealing from their enemies, while "evil" characters do?
This is where one starts to realize why they just avoided the whole issue.